Model Concession Agreement For Ppp Projects

Barely two years after the NDA-1 cabinet revised the model concession agreement (MCA) for public-private partnership (PPP) projects with large port funds, the Ministry of Navigation is back on the drawing board in an attempt to reshape the key document that defines the terms of a port contract. Force majeure. This section deals with events (political and apolitical), party obligation, cost allocation, compensation to dealers, termination of contract due to force majeure and payments resulting from termination. The following figure shows the typical structure of a concession contract. It should be noted that, in a PPP concession model, a VPS may not always be necessary. However, a BOT concession may require an SPV. Insurance and guarantees, non-responsibility. Representations and guarantees from the dealer and the government authority regarding the obligations to notify the other party of any changes are covered by this section. This replaced the previous method of allocating projects based on the highest revenues that a bidder was willing to share with the port`s public domain from its gross annual revenues. Example 4: Argentina – Contrato de Concesién Ferroviaria (430/94) and Addenda (167/01), Grupo de Servicio 6, Lenea Belgrano Norte (Spanish) – Concession contract between the Argentine state and a private entity (Ferrovias Sociedad Anonimas Concessionarios) on the Belgrano Norte railway line (from Villa Rosa to Retira – Buenos Aires Metropolian Area) with surcharge.

The concession concerns a railway line for the public transport of passengers (concesién de servicio péblico). The dealer has the right to use all transferred assets, including rolling stock. Concessionaire is required to operate the rail system, maintain rail infrastructure and make the investments specified in the concession contract. The holding of assets is the responsibility of the agreeing authority. Assets are reset to the consent authority at the end of the concession period, including assets acquired by the dealer (exemptions apply to vehicles). The term of the contract is 24 years (extendable). The dealership is required to grant access to the tracks to railway companies defined in the agreement or to other dealers on the basis of access agreements against track access charges. The conditions for access to the track and access fees must be fair and reasonable (point 6.3 of the concession contract). Details are contained in the treaty annexes (not yet published). Transfer of the project facility.

Time, dealer obligations, liability in the event of failure, representation rights, delivery procedures and valid discharge are the main points of this section.

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